Lookout For Scam Realtors

There are several ways that are being employed by certain parties to create scam when it comes to real-estate purchases. Some of the participants are actually the realtors themselves.

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Lookout For Scam Realtors

There are several ways that are being employed by certain parties to create scam when it comes to real-estate purchases. Some of the participants are actually the realtors themselves.

The following are some of the more popular ways these realtors try to scam clients, thus there is a need to be extra weary and careful when a deal seems too good to be true:

  • Property flips are becoming a common scam practice. More recently, this practice has come to light and many people have been caught in the middle, though before this style was considered to be legitimate. Buying low and selling high does not seem to be a bad investment practice but when it is done in a misleading way then the issues of legitimacy is in question.
  • Then there is the practice of the realtors under valuating properties with fraudulent appraisals where the banks are persuaded to sell off the said properties at very low prices. These properties are then put back on the market for sale at higher prices.
  • There are also cases of creative credit enhancements where the bank account used in a credit balance check is really not the buyer’s legitimate account and is only a sub account. This is where the buyers do not really have any access to the funds but claim to be the owners of such accounts.
  • As the types of loan given out are usually dictated by the style the purchase is earmarked for the bank are often conned into believing that the intended property is going to be used as the applicant’s dwelling place. However in reality the property is really meant for other purposes such as rental, commercial, resale and any other fast turn over profit making schemes. This is especially prevalent when the property in question is located in another country.

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